The current economic crisis, brought about by problems stemming from the financial sector, has led to strong congressional and policy responses focused on restoring liquidity and capital to financial institutions, restructuring the market, alleviating the tightening of credit to businesses and consumers, and providing mortgage assistance to borrowers. To help customers remain informed on the responses our government has taken during this unique time of change, Matthew Bender/LexisNexis has published this special pamphlet focusing on the legislative and regulatory responses to the financial crisis.

Topics covered include:

background and statutory authority

Treasury Department programs

Federal Deposit Insurance Corporation initiatives

Federal Reserve System approaches

Public-Private Investment Program

consumer and auto industry programs

Written by a lawyer with a wealth of experience in financial and regulatory practice, this special pamphlet discusses the nature of the problem and the various statutory and policy approaches that have resulted in programs implemented by the Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.

Table of Contents

§ 1.0 Introduction

§ 2.0 Background and Statutory Authority

[1] Crisis in the Financial System

[2] The Emergency Economic Stabilization Act of 2008

[3] Systemic Risk Exception to the Federal Deposit Insurance Act

[4] Section 13(3) of the Federal Reserve Act

[5] American Recovery and Reinvestment Act of 2009

§ 3.0 Department of Treasury Programs

[1] General Overview of Troubled Assets Relief Program

[a] Establishment of the TARP

[b] Powers and Duties

[c] Funding

[d] Executive Compensation

[2] Asset Guarantee Program

[3] Capital Purchase Program

[4] Capital Assistance Program Generally

[a] Supervisory Capital Assessment Program

[b] Capital Assistance Program

[5] Targeted Investment Program

§ 4.0 Federal Deposit Insurance Corporation Programs

[1] Temporary Liquidity Guarantee Program

[a] Debt Guarantee Program

[i] Opt Out Provisions

[ii] Eligible Debt

[iii] Coverage, Duration and Amount of the Debt Guarantee

[iv] Notices

[v] Assessments

[vi] Enforcement

[b] Transaction Account Guarantee Program

§ 5.0 Federal Reserve System Approaches

[1] Lower Rates for Credit

[2] Term Auction Facility

[3] Primary Dealer Credit Facility

[4] System Open Market Term Securities Lending Facility and Term Securities Lending Facility Options Program